Indonesia, India Fast-Track Open Digital Network as AI Becomes Core of SME Ecosystem

[Updated on July 8, 2026, to clarify that the ION initiative was announced during Prime Minister Modi's visit.]

JAKARTA, Investortrust.id — Indonesia and India have begun implementing the Indonesia Open Network (ION), an open digital infrastructure initiative designed to accelerate the digital transformation of Indonesia's small businesses by integrating payments, financing, logistics, and artificial intelligence into a single ecosystem.

The initiative moves beyond policy commitments into technical implementation following agreements reached during Indian Prime Minister Narendra Modi's state visit to Jakarta and bilateral talks with Indonesian President Prabowo Subianto.

Indonesia's more than 65 million micro, small and medium-sized enterprises (SMEs) account for the overwhelming majority of businesses and employ most of the country's workforce, but many continue to face limited access to financing, digital tools, and national markets.

If successfully deployed, ION could become one of Indonesia's most significant public digital infrastructure projects, helping lower barriers for SMEs while creating new opportunities for fintech companies, logistics providers, e-commerce platforms, and AI developers.

Minister of Micro, Small and Medium Enterprises Maman Abdurrahman said the project has already entered its implementation phase and is no longer limited to memorandums of understanding.

"The cooperation has moved beyond the MoU stage and is now at the technical implementation level. Together with APINDO and our Indian partners, we are detailing the implementation so it can be accelerated," Maman told reporters at the Presidential Palace complex in Jakarta on Tuesday.

The project is one of the outcomes of the broader Indonesia-India strategic partnership announced by Prabowo and Modi. ION is explicitly listed among the six key announcements, that reflects the fact that implementation has already begun.

The seventh bilateral agreement signed during the leaders' meeting covers cooperation in telecommunications, technology, and digital services, providing the broader framework supporting the initiative.

Indonesia's largest business association, APINDO (the Indonesian Employers Association), welcomed the project, saying it could address long-standing obstacles facing local businesses.

APINDO Chairwoman Shinta Kamdani said SMEs have historically struggled with access to financing, digital services, and broader markets, challenges that ION aims to address through an integrated digital platform.

"Implementation is already underway. This is the result of discussions between the two heads of government, and now the focus is ensuring SMEs can benefit from it," Shinta said.

She said the open network is expected to combine financing, digital payments, logistics, marketing, and supply-chain services within one interoperable ecosystem.

"All of these services will become part of one ecosystem," she said.

Artificial intelligence is also expected to become a core component of the platform rather than simply an additional digital tool.

"AI is no longer just a trend. It will become part of the ecosystem we are building going forward," Shinta said.

The government expects the platform to create a more inclusive digital economy by connecting businesses, financial institutions, service providers, and technology companies through open digital infrastructure, expanding opportunities for Indonesian entrepreneurs across the country.